BMAL 590 MACROECONOMICS EXAM QUESTIONS
AND ANSWERS WITH COMPLETE SOLUTIONS
VERIFIED
An economic recession refers
to:
a period, typically two consecutive quarters, during which aggregate output declines
Deflation refers to:
a decrease in the overall price level.
Macroeconomics is the branch of economics that deals with:
the economy as a whole
The school of economic thought that argues that price and wage rigidities do not provide the only
reasoning for an active macroeconomic policy framework is referred to as:
Neo-Kenesians
The primary driver for the emergence of macroeconomics theory as we know it today was the failure
of:
the classical model to explain the prolonged existene of high unemployment during the great
depression.
The approach that uses monetary policy to stabilize the economy is known as:
, fine tuning of demand
According to Keynesian theory, the level of unemployment is determined by:
the level of aggregate demand for goods and services
Assume you are an author and your book is priced at $9.95. The publisher expects to sell 5,000 copies
at this price. Suppose the publisher decides to offer the book at $8.95, the publisher can expect to sell:
more than 5,000 copies
At a price of $99.95, the manufacturer of a popular herbal supplement is willing to produce 10,000
packed units of the supplement. At a price of $149.95, it is likely that he manufacturer would be
willing to produce:
more than 10,000 packed units
If ultrabook manufacturers are producing ultrabooks faster than people want to buy them:
there is an excess of supply and price may be expected to decrease
Disposable income is that part of a household's income remaining after deduction of:
income tax
Total consumption divided by total income would give us:
the average propensity to consume
In which of the following situations would we be likely to observe an increase in the equilibrium price
and decrease in the equilibrium quantity?
If supply falls even as demand increases, and the fall in supply is greater than the increase in demand.
AND ANSWERS WITH COMPLETE SOLUTIONS
VERIFIED
An economic recession refers
to:
a period, typically two consecutive quarters, during which aggregate output declines
Deflation refers to:
a decrease in the overall price level.
Macroeconomics is the branch of economics that deals with:
the economy as a whole
The school of economic thought that argues that price and wage rigidities do not provide the only
reasoning for an active macroeconomic policy framework is referred to as:
Neo-Kenesians
The primary driver for the emergence of macroeconomics theory as we know it today was the failure
of:
the classical model to explain the prolonged existene of high unemployment during the great
depression.
The approach that uses monetary policy to stabilize the economy is known as:
, fine tuning of demand
According to Keynesian theory, the level of unemployment is determined by:
the level of aggregate demand for goods and services
Assume you are an author and your book is priced at $9.95. The publisher expects to sell 5,000 copies
at this price. Suppose the publisher decides to offer the book at $8.95, the publisher can expect to sell:
more than 5,000 copies
At a price of $99.95, the manufacturer of a popular herbal supplement is willing to produce 10,000
packed units of the supplement. At a price of $149.95, it is likely that he manufacturer would be
willing to produce:
more than 10,000 packed units
If ultrabook manufacturers are producing ultrabooks faster than people want to buy them:
there is an excess of supply and price may be expected to decrease
Disposable income is that part of a household's income remaining after deduction of:
income tax
Total consumption divided by total income would give us:
the average propensity to consume
In which of the following situations would we be likely to observe an increase in the equilibrium price
and decrease in the equilibrium quantity?
If supply falls even as demand increases, and the fall in supply is greater than the increase in demand.
